VC Risikokapital in richtigen (zittrigen) Händen || Klaus Nathusius

© Prof. Dr. Klaus Nathusius1

Georg-August-Universität GöttingenWirtschaftswissenschaftliche Fakultät

Entrepreneurship& Entrepreneurial Finance

Presentation on March 18, 2011Berlin

at the Conference „Startup Camp Berlin 2011“

Kontaktinformationen:

Prof. Dr. Klaus NathusiusManaging General PartnerGENES GmbH Venture Services Tel: +49-2234-955460Kölner Straße 27 Fax: +49-2234-955464 [email protected] Frechen Mob. +49-171-9960847 www.genes-ventures.de

Georg-August-Universtät GöttingenPlatz der Göttinger Sieben 3D-37073 Göttingen www.uni-goettingen.de/eef

Prof. Dr. Klaus Nathusius

VENTURE CAPITAL – Risikokapital in richtigen (zittrigen?) HÄNDEN?Zerstören deutsche VCs "Innovationen" und Arbeitsplätze durch ihre Risikoaversion?

GENES GmbH Venture ServicesVenture Capital Fonds Management

Early Stage Consulting und Coaching

VENTURE CAPITAL – Risikokapital in richtigen (zittrigen?) Händen?Zerstören deutsche VCs "Innovationen" und Arbeitsplätze durch ihre Risikoaversion?VENTURE CAPITAL – Risikokapital in richtigen (zittrigen?) Händen?Zerstören deutsche VCs "Innovationen" und Arbeitsplätze durch ihre Risikoaversion?


GENES GmbH Venture Services

•Founded in 1978 by Prof. Dr. Klaus Nathusius

•Venture Capital (VC) management company and venture consulting

company

•GENES was the pioneer of VC in Germany following the US mode of operation

•First VC Fund: International Venture Capital Partners S.A. Holding,

Luxembourg

•Second VC Fund: Euroventures Germany, C.V., Eindhoven/Netherlands

•Ex Chairman of EVCA European Private Equity and Venture Capital Association,

Brussels

•1992 – 2002 VC investments in East German industrial companies after the

German unification

•Since 1978 entrepreneurship teaching and training programs in German

Universities and Chambers of Commerce

•Since 2002 VC investments (Seed and Start Up Capital) in university and

industrial spin offs


Venture Capital Definition (1)

• equity financing

• early stage financing

• pre stockmarket financing

• duration of financing: 3 to 7 years

• financing + value adding

• equity financing

• early stage financing

• pre stockmarket financing

• duration of financing: 3 to 7 years

• financing + value adding


Venture Capital Definition (2)

• VC = „apprenticeship“ business

• VC = „pedestrian“ business

• no „Lifestyle Ventures“

• target: Middle Market Ventures

• target: High Potential Ventures

• VC = „apprenticeship“ business

• VC = „pedestrian“ business

• no „Lifestyle Ventures“

• target: Middle Market Ventures

• target: High Potential Ventures


Types of Start Up Financingand Financial Instruments

Base Models Types of Financing Financial instruments

No-Budget-Model

no financing round

„self feeding business“ sweat equityR+D project financingmoonlightingprepayments

Low-Budget-Model

one financing round

equity and debt financing founders capitalF+F capitalbank debtsuppliersleasingpublic funds and subsidies

Medium + Big-Budget-Model

several financing rounds

equity and debt financing seed capitalbusiness angelsventure capitalcorporate venture capitalprivate equitymezzanine financingprivate placementIPO+ financial instruments of low budget model


Optimal Financing Structures and Corporate Life Cycle

profit

time

productdevelopment

marketentrance

marketpenetration

marketdiffusion

equity

equity Mezzaninecapital

debt.

Debt. Mezzanine

capital equityIPO

debt.


Structure of Equity-Financing

Public Equity

stockmarkets

Later Stage Financing • development• growth• MBO/MBI• Turnaround• change of ownership• Re Starts• („Vulture Fonds“)

Private Equity

non listed shares

Equity

Early Stage FinancingVenture Capital

• Pre Seed• Seed• Start Up• early development


Exit-Routes

IPO (Initial Public Offering)

trade sale

secondary purchase

buy back

write off

IPO (Initial Public Offering)

trade sale

secondary purchase

buy back

write off


Venture Capital Process: Players

Investee Companies

Investors

VC Process

Venture Capital Company


Venture Capital - Framework

ressources

chances people

context

risiks


VC Management as Financial Intermediary

Banks, Insurance Comp., Pension-Funds, Industrial Investors,Private Investors, Government

investment

decisions

capital-infusion

distribution

fund-initiativecapital-acquisition

reporting

investment-processmonitoring

value addingexit-strategy

VC-Investors

Intermediary

VC-Investees

VCManagement-Team

VCFund

Portfolio


Venture Capital Decision Criteria

management team

marketable (innovative) product

marketpotential

scaleble business model

convincing profit potential

international potential

acceptance of partnership with financial investor

exit routes

not dividend oriented, but value increase oriented

company valuation acceptable

management team

marketable (innovative) product

marketpotential

scaleble business model

convincing profit potential

international potential

acceptance of partnership with financial investor

exit routes

not dividend oriented, but value increase oriented

company valuation acceptable


Venture Capital Cycle

phase 1: sourcing and first contact

phase 2: screening and first selection

phase 3: due diligence and valuation

phase 4: financial structuring and investment proposal

phase 5: negotiating and investment decision

phase 6: closing

phase 7: value adding + monitoring

phase 8: exiting

Phase Dauer

4 weeks

––

1-3 months

2 weeks

1-2 months

––

3-5 years

0,5 - 1,5 years


Performance of a Venture Capital Portfolio(sample, fund size: € 10 mill.)

Performance Segments Cash Returnin mill. €

total losses 3 x 0 = 0

no „capital gain“ 3 x 1 = 3

two – to five times money back 2 x 5 = 10

multiple of 10 plus 2 x 10 = 20

total return

(before transactions costs and taxes)

33


Finanzierungsgenese von Amazon.com

Jahr Finanzierungsinstrument Kapitalzufluss in Mio. US $

1995Quartal 3

GründerfinanzierungFamily&Friends (F&F)

0,1

1996Quartal 1

Venture Capital(Kleiner Perkins)

8,0

1997Quartal 2

Börsen-Erstemission (IPO) 50,0

Quelle: Marcus, James: amazonia, Five Years at the Epicenter of the Dot.com Juggernaut, New York 2004


Finanzierungsgenese von Web.de

Jahr Finanzierungsinstrument Kapitalzufluss in Mio. €

Januar 1999 Aktienkapital(Ausgründung aus CINETIC GmbH)

0,1

Juni 1999 Venture Capital & Business Angel(3i, Bayview, Dr. Georg Baumann)

8,0

August 1999 (Institutionelle) Investoren(Aktienemission an 3i, Commerzbank Beteiligungs Gesellschaft, Sal. Oppenheim, Wilhelm von Finck Senior und Junior, AXA Colonia)

21,9

Januar 2000 Bridge Finanzierung(Aktienemission an bisherige Investoren)

7,5

Februar 2000 Börsengang (IPO) 180-224

Quelle Zahlenmaterial: Mayringer, Heinz: Corporate Financing in the Growth Industries, Basics & Case Studies, Salzburg 2001


Resümee und Ausblick

Deutschland brauchtbessere unternehmerische Sensorik (Opportunity Recognition)

mehr und qualifiziertere Gründungen und Gründer

mehr Gründungskapital

- Business Angels

- Seed Capital Fonds

- Early Stage Venture Capital Fonds

qualifizierteres Gründungskapital (Venture Training)

bessere Rahmenbedingungen für Gründungsinvestoren

insbesondere steuerliche Anreize

bessere Rahmenbedingungen für Entrepreneurship Ecosysteme

Deutschland brauchtbessere unternehmerische Sensorik (Opportunity Recognition)

mehr und qualifiziertere Gründungen und Gründer

mehr Gründungskapital

- Business Angels

- Seed Capital Fonds

- Early Stage Venture Capital Fonds

qualifizierteres Gründungskapital (Venture Training)

bessere Rahmenbedingungen für Gründungsinvestoren

insbesondere steuerliche Anreize

bessere Rahmenbedingungen für Entrepreneurship Ecosysteme

Documents

VC Risikokapital in richtigen (zittrigen) Händen || Klaus Nathusius